Cash Dividend

Understand how the forthcoming and future Dividends will be paid as Dividends can be presented to Shareholders in several ways. If paid in cash, then this is a Cash Dividend.

Dividends can be presented to Shareholders in different forms, Cash or a Dividend Reinvestment Plan. Understand how the forthcoming Dividend is being offered. Specifically, when paid in cash to the shareholders of a Company, then this is a Cash Dividend. The amount paid out, is usually based on the profitability of the Company. The Dividend Policy is decided by the Board of Directors. They will decide how a Dividend will be paid, for example in Cash, and how much will be paid. A Cash Dividend is considered taxable income in most countries and some countries will apply Franking Credits to avoid double taxation.